Dr Shezad Malik Law Firm has offices based in Fort Worth and Dallas and represents people who have suffered catastrophic and serious personal injuries including wrongful death, caused by the negligence or recklessness of others. We specialize in Personal Injury trial litigation and focus our energy and efforts on those we represent.

September 14, 2009

Utah Supreme Court Says Insurer Has to Pay Malpractice Policy

After years of legal wrangling, a 12-year-old Eureka, Utah boy who suffered brain damage at birth is a step closer to getting money to help compensate for his injuries.

The Utah Supreme Court on Tuesday ruled an insurance company cannot invalidate the medical malpractice policy of the obstetrician who made a failed attempt to deliver the boy with forceps. Under that decision, The Doctors’ Company (TDC), an insurance company based in Napa, Calif., remains responsible for an almost $1.3 million jury verdict in favor of Athan Montgomery. With interest, the total could top $2 million.

The insurer has argued for years that it should be excused from defending the doctor or paying any judgment on his behalf.

David Biggs, an attorney who represents Athan and his family, said: “We are pleased beyond measure that finally, this young child, now a young man, might be compensated for the medical malpractice that took place so many years ago.”

Heidi J. Judd, who gave birth in May 1997 at Tooele Valley Regional Medical Center, alleges her son has permanent brain damage because Dr. Gregory Drezga pulled too hard with forceps. Even before Judd filed a lawsuit in 1998, Drezga disappeared and his whereabouts remain unknown.

TDC sought a declaration that Drezga’s policy was invalid because the doctor failed to report three previous malpractice claims against him and did not cooperate in his defense. A 3rd District judge rejected the request.

At a December 2002 trial, attorneys James McConkie and Bradley Parker argued that Athan suffers from cognitive disability and slight paralysis on his left side because of the forceps injury and a subsequent Caesarean section.

A jury awarded the boy $1.25 million for pain and suffering and $1,022,735.30 in special damages for past and future medical expenses. The award was reduced by $1 million because of a state-mandated cap of $250,000 on non-economic damages.

The jury found no negligence on the part of Tooele Valley Regional Medical Center.

After the trial, Judd realized that her son might not be able to get any money if TDC voided the insurance and asked that an attorney be appointed to represent the absent Drezga. A judge agreed and also ordered TDC to pay the attorneys’ fees.

The Supreme Court ruled 3-2 in 2004 that the damages cap was constitutional. Then, in 2005, it upheld the appointment of a lawyer to argue on Drezga’s behalf against voiding his insurance.

In Tuesday’s ruling, the justices noted that TDC took action to cancel Drezga’s policy in 2000 and ruled that the cancelation affected only future cases. The court, under the “extraordinary circumstances” in the case, also upheld the order that the company pay the fees for the doctor’s attorney.

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